Gov. Chris Gregoire is scheduled to sign more than two dozen bills this morning, including one that will help the state implement President Obama’s federal healthcare reform. Gregoire has been refusing to sign the vast majority of bills into law as a way to pressure lawmakers to get the budget done. She eased up her position earlier this week, though, saying budget writers were making some progress.

A number of the bills are tied to the supplemental transportation budget, including:

HB 2660: Imposes a $100 annual fee on electric vehicles, which supporters say is a way to recoup lost revenue from gas taxes that the owners of electric vehicles don’t have to pay. General Motors opposed the fee in a letter to Gregoire, saying the electric vehicle market isn’t strong enough to support new taxes or fees yet.

SB 6150: Raises fees for a driver’s license from $25 to $54 starting in July 2013. The license will be good for six years instead of the current five, and it will use new facial recognition technology to identify drivers.

Later in the day, she’s signing the Heathcare Exchange bill at a Group Health clinic in Olympia. The bill prepares the state for compliance with federal rules when they go into effect in 2014, laying out the process for creating a healthcare exchange — or a marketplace where state residents and small businesses will be able to shop for health insurance.

A complete list of bills she’s signing can be found here.

Tags: healthcare exchange, transportation

Sen. Mary Margaret Haugen is introducing the Senate’s version of the transportation budget. Despite earlier talk of a major transportation package, Haugen said they “really felt they couldn’t do a major tax increase” this year.

Sen. Curtis King thanked Haugen for the bipartisan process by which they wrote the budget. He said he wants to highlight ferries and reforms. King said the budget includes $2.9 million in fuel savings that ferries achieved through smarter purchasing, authorized by the Legislature last year. The budget also includes funding for a second 144-car ferry. He said those and other changes to the ferry system don’t solve all the ferry system’s issues, but they do put it on the right track.

On the subject of reforms: He said the budget reduces the administrative workforce in the Department of Transportation by 5 percent. He said WDOT is required to increase the ratio of workers to managers. He said they’re also asking for more project updates from WSDOT. “These reforms will save the state money,” he said, and help “to make our overall transportation system more transparent” and less costly.

Sen. Tracey Eide said freight mobility is critical. “All the projects that we have put up play an important role in moving goods” into, out of and through the state. She also said rising gas prices necessitate better mass transit, and this budget provides for that.

Sen. Joe Fain said that the lack of a large transportation package doesn’t mean they’re slowing down on planning for the future. He said the northern portion of I-405 came in under bid, freeing up tens of millions of dollars in the budget.

Sen. Steve Hobbs said the budget makes three key investments in the state patrol, including upgrading their radio system. He said it also funds the facial recognition program, which he said will enable the Department of Licensing to catch 8 to 12 applicants each day who are illegally using another person’s identity.

Haugen said there just weren’t the votes for Gov. Chris Gregoire’s proposed fee on oil barrels.

She also said the transportation budget isn’t the most exciting — and that’s just fine with those on the committee.

Tags: Budget, Senate, transportation

House transportation leaders released a $9.8 billion transportation budget today, which includes money to keep the state’s network of ferries running for the next three years without eliminating routes — something officials had warned could happen without a new revenue source.

The budget sets aside $55 million for about ten “immediate” transportation needs, such as a second 144-car ferry, highway maintenance, transit, and improving conditions for children who walk or bike to school.

Those projects would be paid for by increasing fees for driver’s licenses and auto license plates. The cost for a driver’s license, for example, would increase from $25 to $54 by July 2013 under a bill approved by the Senate. The license would be valid for six years instead of the current renewal period of five years. The fees would generate about $210 million for transportation projects over the next two years.

Overall, the $9.8 billion budget changed little from the previous year, except for $770 million in bond proceeds for the new 520 bridge connecting Seattle with Bellevue. “The major thing is that we are in stable condition” for the next two years, said transportation chair Rep. Judy Clibbon, D-Mercer Island.

Among capital projects included in the budget:

• $15 million in federal grant funds to improve the flow of traffic on I-5 through Joint Base Lewis McChord
• $36 million for toll equipment for the I-405 widening project
• $31 million in federal funds and $30 million from Oregon for the Columbia River Crossing project
• $41 million in City of Seattle funds for the Alaskan Way Viaduct Replacement project

Tags: Budget, transportation

Yesterday, I spoke with Rep. Judy Clibborn, chairwoman of the House Transportation Committee. We talked about transportation funding — and she gave me a sneak preview of the $10 to $15 billion transportation funding package that she says the governor will talk about in her State of the State address today.

Tags: House, transportation

Here’s a relaxing photo to enjoy before you hear the bad news: Ferry fares are going up.

Earlier this week, the Washington State Transportation Commission adopted a 2.5 percent general fare increase, effective Oct. 1. A 3 percent increase will go into effect May 1, 2012, and every fare will have a capital surcharge of 25 cents. In addition to that, vehicle fares will be restructured to encourage people to bring smaller vehicles onto the ferry.

The changes will help bring in $310 million as required by this biennium’s transportation budget.

While fares are going up, some of the changes are designed to encourage ferry riders to ride bicycles or drive smaller cars to save space. The restructured vehicle fares, for example, will eventually mean that those driving cars under 14 feet long will pay significantly less for their vehicle fare. And the annual bicycle permit is eliminated: Those with multi-ride cards, monthly passes or an ORCA card can bring a bike for free (except for in the San Juan Islands, where only multi-ride cardholders will be able to bring a bike for free).

There’s one more change that might not be as popular as free bike passes: A fuel surcharge. The surcharge would only go into effect if gas hits $4.08 per gallon, and the surcharge would be capped at 10 percent. Changes will be assessed quarterly and customers will get a 30 day notice if any surcharge changes are made.

All these changes are aimed at making the Washington State Ferry system slightly more sustainable. Currently, funding from the Legislature and fares doesn’t match costs. TVW’s Jessica Gao has spent the last month talking with ferry experts around the state and is preparing a documentary on the system that will air Tuesday, Sept. 27. Stay tuned to this blog for more information!

Tags: documentary, fares, ferries, transportation, TVW

Last week, I spoke to Tim Eyman about his latest initiative and how it would affect tolling across the state. This week, I spoke with Doug MacDonald, former secretary of transportation. He retired in 2007, just after the Tacoma Narrows Bridge opened. He’s an opponent of the initiative. Here’s what he had to say.

Q: First, what does this initiative do from your perspective?
MacDonald: Well, the worst part of the initiative is that it’s going to stop a whole lot of progress that’s been made on roadway improvements. I’m not sure that Tim Eyman, when he drafted this initiative, understood what some of its effects would be. But the kind of bomb that it dropped that’s most significant is on the 520 bridge project, because that’s structured to be financed by tolls to pay back bonds that would pay for some of its cost. That’s a good thing because it means that costs get paid in part by the users and not fall on taxpayers across the state. That’s a plan that’s been very attractive.

But the initiative says that tolls have to be set by the Legislature, which is absolutely not consistent with tolls being used to pay back that kind of a bond. And the confirmation of that isn’t coming from people like me, it’s coming from our state treasurer, Jim McIntire. McIntire has analyzed all this and he has put out a statement, reflected in the OFM fiscal analysis, that says that investors won’t buy bonds at as favorable a rate if there’s the political uncertainty of having tolls being set by the Legislature. (more…)

Tags: Doug MacDonald, funding, initiative 1125, Q&A, taxes, Tim Eyman, tolls, transportation

The bill would allow counties to impose a two-year congestion reduction charge of up to $20. The money would be used to complete a congestion reduction plan. People would pay the extra fee when they renew their registration.

Supporters of the bill said it creates a local option for funding things like transit, particularly King County Metro, which helps people get to work and assists them in daily errands. But those opposing the fee said it is just another tax on drivers.

The original bill was passed out of the Senate with a 26 to 23 vote. Similarly in the House, the vote was 51 to 46, but not before it’s members amended the measure. When the Senate refused to concur a conference committee was appointed. The final proposal is based on the conference committee’s report.

“I did agree to the changes that were made in the conference report…but I still can not support this bill,” said Sen. Curtis King. He said that the people of King County should get to vote on the topic.

“King County is the economic center of this state,” said Sen. Mary Margaret Haugen. “This a tool to get through the next two years…this is the first time that we have ever had business, labor, citizens down testifying in favor.”

It just passed the Senate by a 25-21 vote  and has been immediately transmitted to the House.

Tags: Senate, transportation

Sen. Joe Fain is now discussing the state patrol portion of the Senate Transportation budget.

One of the highlights, Fain said, is how they’ve handled “narrow banding” – the shrinking of radio frequencies that the state can use. “We have made a $40 million in this year’s budget in providing funds to move toward narrow-banding,” he said. If the state moved to narrow banding without making the additional investment, Fain said troopers would have less coverage in some areas.

They’d also provide $8.2 million for “mobile office” computers. “This also is very key for public safety,” he said, allowing troopers to run plates immediately.

Finally, “efficiencies” and cuts: “One is on agency use of fuel,” he said — fuel costs have been a big cost driver in the budget. “And finally to simple things like reviewing the uniform policy” — meaning going from dress blues to wash-and-wear uniforms to save money.

Now, Sen. Scott White on public transportation: He said he’s pleased with the priority to provide funding for public transportation.

“Looking to tolling, as we bring bigger and bigger projects online, tolling will continue to be a significant part of how we pay for those projects,” he said. This budget continues tolling on the Tacoma Narrows Bridge and the 167 HOT lanes, as well as the 520 floating bridge. “We will make significant progress on that project this biennium.” He said they’re confident in using tolling to help pay for megaprojects.

Sen. Steve Hobbs: He said the budget includes $240 million for bridge preservation and replacement work, and $25 million of that is for higher risk seismic areas. “We got really good news in the rail budget,” he said — more than $700 million from the federal government for improved rail service on the I-5 corridor.

Sen. Mary Margaret Haugen said a “small fee package” for transportation is on the table.

Tags: state patrol, transportation

The Senate is unveiling its transportation budget now. First up, Sen. Curtis King, discussing ferry funding.

“Our ferry system as-is is not sustainable,” he said. This budget is structured differently than in the past, he said. It includes a $21.8 million reduction in the operating side of the transportation budget. “We are not done looking for more savings,” he said. He said the budget also makes savings by delaying some projects. He said ferries will be asked to target non-peak runs for reductions. Each ferry fair would also include a 25 cent ferry replacement surcharge under the Senate’s budget, and exempts ferry vessel fuel from sales tax.

He’s listed a half dozen bills related to ferries, including one to separate managers out and bar them from unionizing. He said increasing ridership is also a must to ensure that ferries succeed.

He said it provides $134 million for vessel fuel costs — $81 million more than the 2009-2011 biennium. “That’s a 153 percent increase and now represents 27 percent” of the operating budget for state ferries.

“We all recognize the value and the necessity of our ferry system,” he said. “This budget, I believe, starts us down that road of making our ferry system efficient” and affordable, he said.

Tags: ferries, Senate, transportation

“It goes without saying that we find ourselves in historic times,” she said. “We are on the road to economic recovery but it is truly a bumpy path to get there,” she said. The solution: Find creative, “transformative” ways to do business.

First up: The ferry system. “Around the globe, people equate our region with Puget Sound and our iconic green and white ferries,” she said, which carry 23 million passengers a year. She said the ferry system has a “stellar safety and on-time record.”

The problem, she said, is that ferries have been dependent on highway funds for the past decade or so because MVET funds disappeared. The ferry system faces a $900 million shortfall over the next decade, even if efficiencies are found, she said.

She said full privatization isn’t a realistic solution. “Passenger fees alone cannot sustain the system,” she said, adding that fares have probably been “tapped out” because as fares increase, ridership decreases.

She proposes forming a Regional Ferry District, with representatives elected by those in the area and others appointed by the governor. (more…)

Tags: DIS, ferries, Gregoire, information services, OFM, transportation